Commercial Federal Reports Third Quarter Net Income of $23.0 Million.OMAHA Omaha, city, United States Omaha (ō`məhä, –hô), city (1990 pop. 335,795), seat of Douglas co., E Nebr., on the west bank of the Missouri River; inc. 1857. , Neb. -- Commercial Federal Corporation (NYSE NYSE See: New York Stock Exchange :CFB CFB Canadian Forces Base ), today announced net income of $23.0 million, or $0.59 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the quarter ended September September: see month. 30, 2005. This compares to net income of $20.2 million, or $0.50 per diluted share, for the same quarter one year earlier. "I am pleased to report that we have not lost momentum in the core underlying fundamentals driving Commercial Federal's performance. As we continue to accelerate the activities associated with merging with Bank of the West, we are also posting some very strong results," reported William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack A. Fitzgerald, chairman of the board and chief executive officer. Results for the Quarter Net Interest Income Net interest income totaled $67.5 million for the third quarter, compared with $64.1 million for the quarter ended September 30, 2004. Net interest margin improved year-over-year by 43 basis points, to 2.97%. Noninterest Income Noninterest income increased 25% from the same quarter a year earlier to total $37.0 million for the quarter ended September 30, 2005. Retail fees posted another strong gain by improving 20% over last year's third quarter. Also positively impacting this category was the net current period receipt of $4.5 million from the settlement of the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. goodwill lawsuit lawsuit: see procedure; tort. , which was adjudicated in Commercial Federal's favor. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. For the quarter ended September 30, 2005, general and administrative expenses increased marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. by $2.0 million to $65.0 million compared to $63.0 million for the same quarter a year earlier. The year-over-year increase was driven mostly by a rise in overall compensation and benefits expenses. However, compensation and benefit costs declined by $1.6 million from the prior quarter ended June June: see month. 30, 2005, due to the full quarter impact of fewer employees following the Company's exit from the wholesale mortgage and third party mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. businesses. Credit Risk Management At the end of the third quarter, total nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. fell to $63.7 million from $67.5 million in the previous quarter. Overall credit quality for the Company remains strong with only 0.63% of total assets being considered nonperforming. Net loan charge-offs for the third quarter were $7.9 million, compared to $4.8 million in the previous quarter. Construction lending charge-offs accounted for the bulk of the quarterly difference, primarily the result of a $2.6 million write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of a loan tied to an apartment complex in the greater Denver Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. area. The allowance for loan losses totaled $89.3 million at September 30, 2005, or 1.12% of loans outstanding versus $89.3 million, or 1.14%, at June 30, 2005. Balance Sheet and Capital Ratios Total assets as of September 30, 2005 were $10.2 billion, compared with $10.3 billion and $11.4 billion as of June 30, 2005 and September 30, 2004, respectively. For the third quarter, core deposits, including checking, money market and savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: (excluding custodial escrows) remained relatively stable at around $3.9 billion. Total gross loans receivable increased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100 million to $7.9 billion at September 30, 2005. As of September 30, 2005, stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $772.5 million, compared with $755.4 million at June 30, 2005 and $767.9 million at September 30, 2004. The capital ratios of the Company's banking subsidiary continued to exceed regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. for classification as "well-capitalized," the highest regulatory standard. Commercial Federal Corporation (NYSE:CFB) is the parent company of Commercial Federal Bank, a $10.2 billion federal savings bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks with branches located in Nebraska Nebraska (nəbrăs`kə), Great Plains state of the central United States. It is bordered by Iowa and Missouri, across the Missouri R. (E), Kansas (S), Colorado (SW), Wyoming (NW), and South Dakota (N). , Iowa, Colorado Colorado, state, United States Colorado (kŏlərăd`ə, –răd`ō, –rä`dō), state, W central United States, one of the Rocky Mt. states. , Kansas, Oklahoma Kansas is a town in Delaware County, Oklahoma, United States. The population was 685 at the 2000 census. Geography Kansas is located at (36.202423, -94.795122)GR1. , Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. and Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). . Commercial Federal operations include consumer and
commercial banking services, including retail banking, commercial and
industrial lending, small business banking, construction lending, cash
management, mortgage origination OriginationThe process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and servicing, and insurance and investment services. Commercial Federal's Web site, http://www.comfedbank.com, includes access to company news releases, annual reports, quarterly financial statements and SEC filings. Certain statements contained in this release are forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. in nature. These statements are subject to risks and uncertainties that could cause Commercial Federal's actual results or financial condition to differ materially from those expressed in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements. Factors of particular importance to Commercial Federal include, but are not limited to, changes in general economic conditions, changes in interest rates, changes in regulations or accounting methods, and price levels and conditions in the public securities markets generally.
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF FINANCIAL CONDITION
(Dollars in Thousands Except Par Value)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
ASSETS 2005 2005 2004
----------------------------------------------------------------------
Cash (including short-term
investments of $3,158, $30,874
and $2,060) $172,906 $212,696 $165,652
Investment securities available
for sale, at fair value 510,420 522,403 1,063,033
Mortgage-backed securities
available for sale, at fair value 610,705 608,906 1,068,713
Loans held for sale, net 49,744 198,570 287,757
Loans receivable, net of
allowances of $89,266, $89,268
and $94,857 7,850,988 7,758,037 7,651,557
Federal Home Loan Bank stock 169,166 157,700 202,284
Foreclosed real estate 13,710 11,316 17,047
Premises and equipment, net 183,560 176,083 163,987
Bank owned life insurance 253,687 250,875 248,057
Other assets 180,890 250,317 372,514
Core value of deposits, net of
accumulated amortization of
$71,530, $70,566 and $67,636 9,519 10,483 13,413
Goodwill 159,229 159,229 162,717
----------------------------------------------------------------------
Total Assets $10,164,524 $10,316,615 $11,416,731
----------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------------------------------
Liabilities:
Deposits $6,066,243 $6,354,932 $6,249,222
Advances from Federal Home Loan
Bank 2,810,225 2,798,108 3,767,837
Other borrowings 428,637 306,848 433,599
Other liabilities 86,935 101,334 198,215
----------------------------------------------------------------------
Total Liabilities 9,392,040 9,561,222 10,648,873
----------------------------------------------------------------------
Commitments and Contingencies - - -
----------------------------------------------------------------------
Stockholders' Equity:
Preferred stock, $.01 par
value; 10,000,000 shares
authorized; none issued - - -
Common stock, $.01 par value;
120,000,000 shares authorized;
38,287,922, 38,213,347 and
39,352,564 shares issued and
outstanding 383 382 394
Retained earnings 766,453 746,748 816,688
Accumulated other comprehensive
income (loss), net 5,648 8,263 (49,224)
----------------------------------------------------------------------
Total Stockholders' Equity 772,484 755,393 767,858
----------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $10,164,524 $10,316,615 $11,416,731
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
----------------------------------------------------------------------
Three Months Ended
Sept. 30, June 30, Sept. 30,
---------------------------------
2005 2005 2004
----------------------------------------------------------------------
Interest Income:
Investment securities $8,440 $8,199 $14,628
Mortgage-backed securities 7,029 7,711 10,930
Loans receivable 126,361 120,585 116,447
----------------------------------------------------------------------
Total interest income 141,830 136,495 142,005
Interest Expense:
Deposits 33,807 33,359 28,765
Advances from Federal Home Loan
Bank 33,717 30,035 45,191
Other borrowings 6,799 6,038 3,960
----------------------------------------------------------------------
Total interest expense 74,323 69,432 77,916
Net Interest Income 67,507 67,063 64,089
Provision for Loan Losses (7,878) (4,079) (2,869)
----------------------------------------------------------------------
Net Interest Income After Provision
for Loan Losses 59,629 62,984 61,220
Other Income (Loss):
Retail fees and charges 21,151 18,853 17,625
Loan servicing fees 795 2,457 10,754
Amortization of mortgage servicing
rights (2) (58) (10,616)
Mortgage servicing rights valuation
adjustment, net (2) (702) (21,644)
Gain on sales of investment
securities - 21 12,588
Gain on sales of mortgage-backed
securities - 1,717 -
Changes in fair values of
derivatives, net (766) (139) 8,665
Gain (loss) on sale of mortgage
servicing rights and wholesale
mortgage origination network 76 (2,106) -
Gain on sales of loans 2,637 885 1,393
Bank owned life insurance 2,812 2,976 2,900
Other operating income 10,252 5,625 7,926
----------------------------------------------------------------------
Total other income 36,953 29,529 29,591
Other Expense:
General and administrative expenses -
Compensation and benefits 32,615 34,226 30,582
Occupancy and equipment 9,758 9,673 9,825
Data processing 5,478 5,103 4,698
Advertising 3,690 1,802 2,963
Communication 3,107 3,104 3,263
Item processing 2,872 3,040 3,195
Outside services 2,526 2,474 4,087
Loan expenses 588 1,021 1,494
Foreclosed real estate, net 415 510 643
Other operating expenses 3,309 1,469 2,266
Merger costs 558 7,578 -
Exit costs 75 864 -
----------------------------------------------------------------------
Total general and
administrative expenses 64,991 70,864 63,016
Amortization of core value of
deposits 964 970 984
----------------------------------------------------------------------
Total other expense 65,955 71,834 64,000
----------------------------------------------------------------------
Income Before Income Taxes 30,627 20,679 26,811
Income Tax Provision 7,590 6,712 6,578
----------------------------------------------------------------------
Net Income $23,037 $13,967 $20,233
----------------------------------------------------------------------
Net Income Per Basic Share $.61 $.37 $.51
Net Income Per Diluted Share $.59 $.36 $.50
----------------------------------------------------------------------
Dividends Declared Per Common Share $.145 $.145 $.135
----------------------------------------------------------------------
Weighted Average Shares Outstanding
Used in Basic EPS 38,043,281 38,124,743 39,583,989
Weighted Average Shares Outstanding
Used in Diluted EPS 39,279,356 38,760,806 40,250,103
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(Dollars in Thousands Except Per Share Data)
----------------------------------------------------------------------
Nine Months Ended
September 30,
----------------------
2005 2004
----------------------------------------------------------------------
Interest Income:
Investment securities $31,125 $42,543
Mortgage-backed securities 24,736 34,943
Loans receivable 361,485 356,308
----------------------------------------------------------------------
Total interest income 417,346 433,794
Interest Expense:
Deposits 99,097 85,449
Advances from Federal Home Loan Bank 104,023 132,816
Other borrowings 23,399 9,047
----------------------------------------------------------------------
Total interest expense 226,519 227,312
Net Interest Income 190,827 206,482
Provision for Loan Losses (20,277) (10,828)
----------------------------------------------------------------------
Net Interest Income After Provision for Loan
Losses 170,550 195,654
Other Income (Loss):
Retail fees and charges 56,106 49,003
Loan servicing fees 13,250 32,688
Amortization of mortgage servicing rights (8,889) (37,901)
Mortgage servicing rights valuation
adjustment, net 7,598 (1,671)
Loss on sales of investment securities (5,655) (1,787)
Loss on sales of mortgage-backed securities (10,966) -
Changes in fair values of derivatives, net (2,052) 2,432
Loss on termination of interest rate swap
agreements (42,457) -
Loss on early extinguishment of debt (40,731) -
Gain on sale of mortgage servicing rights and
wholesale mortgage origination network 3,382 -
Gain on sales of loans 5,927 4,107
Bank owned life insurance 8,684 13,946
Other operating income 22,385 21,690
----------------------------------------------------------------------
Total other income 6,582 82,507
Other Expense:
General and administrative expenses -
Compensation and benefits 99,971 95,005
Occupancy and equipment 28,997 29,983
Data processing 15,656 13,962
Advertising 8,180 10,458
Communication 9,165 9,741
Item processing 8,650 9,381
Outside services 8,414 11,831
Loan expenses 3,407 5,444
Foreclosed real estate, net 2,359 1,351
Other operating expenses 8,157 11,724
Merger costs 8,136 -
Exit costs 3,731 -
----------------------------------------------------------------------
Total general and administrative
expenses 204,823 198,880
Amortization of core value of deposits 2,911 3,419
Impairment of goodwill 3,488 -
----------------------------------------------------------------------
Total other expense 211,222 202,299
----------------------------------------------------------------------
Income (Loss) Before Income Taxes (34,090) 75,862
Income Tax Provision (Benefit) (17,882) 19,009
----------------------------------------------------------------------
Net Income (Loss) $(16,208) $56,853
----------------------------------------------------------------------
Net Income (Loss) Per Basic Share $(.42) $1.41
Net Income (Loss) Per Diluted Share (1) $(.42) $1.38
----------------------------------------------------------------------
Dividends Declared Per Common Share $.425 $.395
----------------------------------------------------------------------
Weighted Average Shares Outstanding Used in
Basic EPS 38,392,520 40,361,719
Weighted Average Shares Outstanding Used in
Diluted EPS (1) 38,392,520 41,068,710
----------------------------------------------------------------------
(1) The conversion of stock options for the nine months ended
September 30, 2005 is not assumed since the Corporation incurred a
loss from operations. As a result, the diluted loss per share for
the nine months ended September 30, 2005 is computed the same as
the basic loss per share.
COMMERCIAL FEDERAL CORPORATION
DEPOSITS AND LOANS
(In Thousands)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
----------------------------------------------------------------------
Deposits by State:
Colorado $2,153,071 $2,111,075 $2,043,870
Nebraska 1,245,465 1,554,526 1,510,313
Iowa 1,036,000 1,035,106 1,024,832
Kansas 610,319 605,929 607,942
Oklahoma 472,454 499,300 525,922
Missouri 275,219 279,998 297,633
Arizona 273,715 268,998 238,710
----------- ----------- -----------
Total deposits $6,066,243 $6,354,932 $6,249,222
=========== =========== ===========
Deposits by Type:
Checking accounts -
Interest-bearing $578,225 $565,449 $587,118
Noninterest-bearing 754,427 723,647 642,013
----------- ----------- -----------
Total checking excluding
escrow accounts 1,332,652 1,289,096 1,229,131
Money market accounts 705,802 604,032 1,195,326
Savings accounts 1,884,764 2,059,182 1,218,777
----------- ----------- -----------
Total core deposits 3,923,218 3,952,310 3,643,234
Custodial escrow accounts 30,585 263,468 252,573
Certificates of deposit 2,112,440 2,139,154 2,353,415
----------- ----------- -----------
Total deposits $6,066,243 $6,354,932 $6,249,222
=========== =========== ===========
----------------------------------------------------------------------
Loans Receivable, before allowance
for losses:
Commercial real estate $2,075,473 $2,096,033 $1,963,904
Commercial operating and other (1) 714,010 641,697 586,922
Construction, net of loans-in-
process 838,526 797,297 624,491
Consumer home equity 1,116,489 1,057,477 967,556
Consumer other 952,844 881,063 789,762
----------- ----------- -----------
Total commercial, construction and
consumer loans 5,697,342 5,473,567 4,932,635
Residential real estate 2,242,912 2,373,738 2,813,779
----------- ----------- -----------
Total loans receivable, before
allowance for losses $7,940,254 $7,847,305 $7,746,414
=========== =========== ===========
----------------------------------------------------------------------
(1) Includes small business, agricultural and Nebraska Investment
Finance Authority loans in addition to commercial operating loans.
COMMERCIAL FEDERAL CORPORATION
ALLOWANCE FOR LOAN LOSSES
(In Thousands)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
----------------------------------------------------------------------
THREE MONTHS ENDED:
-------------------
Beginning balance $89,268 $90,000 $97,082
Provision for loan losses charged to
operations 7,878 4,079 2,869
Charge-offs:
Residential real estate (182) (107) (102)
Commercial real estate (135) (111) (8)
Construction (2,673) (302) (16)
Commercial operating, small
business and agricultural (529) (302) (1,192)
Consumer (5,973) (6,307) (4,751)
---------- ---------- ----------
Charge-offs (9,492) (7,129) (6,069)
---------- ---------- ----------
Recoveries:
Residential real estate - 1 39
Commercial real estate 41 548 1
Construction - 33 -
Commercial operating, small
business and agricultural 27 23 32
Consumer 1,544 1,713 903
---------- ---------- ----------
Recoveries 1,612 2,318 975
----------------------------------------------------------------------
Ending balance $89,266 $89,268 $94,857
----------------------------------------------------------------------
NINE MONTHS ENDED:
------------------
Beginning balance $89,841 $108,154
Provision for loan losses charged to
operations 20,277 10,828
Charge-offs:
Residential real estate (551) (304)
Commercial real estate (2,388) (10,082)
Construction (3,542) (77)
Commercial operating, small
business and agricultural (1,858) (2,676)
Consumer (17,813) (15,453)
---------- ----------
Charge-offs (26,152) (28,592)
---------- ----------
Recoveries:
Residential real estate 1 172
Commercial real estate 590 29
Construction 33 2
Commercial operating, small
business and agricultural 126 227
Consumer 4,550 4,037
---------- ----------
Recoveries 5,300 4,467
----------------------------------------------------------------------
Ending balance $89,266 $94,857
----------------------------------------------------------------------
Summary of charge-offs, net of recoveries:
------------------------------------------
Three months ended $(7,880) $(4,811) $(5,094)
========== ========== ==========
Nine months ended $(20,852) $(24,125)
========== ==========
----------------------------------------------------------------------
ALLOCATION OF ALLOWANCE FOR LOAN LOSSES:
----------------------------------------------------------------------
Specific $7,422 $8,889 $8,395
Nonspecific 68,791 63,939 71,120
Unallocated 13,053 16,440 15,342
---------- ---------- ----------
Allowance for loan losses $89,266 $89,268 $94,857
========== ========== ==========
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
ASSET QUALITY
(Dollars in Thousands)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
----------------------------------------------------------------------
Nonperforming Assets:
Nonperforming loans:
Residential real estate $8,787 $8,963 $8,548
Residential construction 3,238 10,245 4,245
Commercial real estate 16,772 18,062 22,226
Commercial construction 1,155 1,155 968
Consumer 7,662 6,559 4,029
Commercial operating,
small business and
agricultural 6,271 5,327 3,634
------------ ------------ ------------
Total nonperforming loans 43,885 50,311 43,650
------------ ------------ ------------
Foreclosed real estate:
Residential 5,157 6,908 13,435
Residential construction 5,594 1,384 1,205
Commercial 1,183 1,248 631
Commercial construction 1,776 1,776 1,776
------------ ------------ ------------
Total foreclosed real estate 13,710 11,316 17,047
------------ ------------ ------------
Troubled debt restructurings
- commercial 6,130 5,846 4,676
------------ ------------ ------------
Total nonperforming assets $63,725 $67,473 $65,373
============ ============ ============
Total assets $10,164,524 $10,316,615 $11,416,731
============ ============ ============
Nonperforming assets to total
assets .63% .65% .57%
============ ============ ============
Summary of Nonperforming
Assets:
Residential $22,776 $27,500 $27,433
Nonresidential 40,949 39,973 37,940
------------ ------------ ------------
$63,725 $67,473 $65,373
============ ============ ============
----------------------------------------------------------------------
Nonperforming loans to loans
receivable (1) .55% .64% .56%
Nonperforming assets to total
assets .63% .65% .57%
Allowance for loan losses to:
Loans receivable (1) 1.12% 1.14% 1.22%
Total nonperforming loans 203.41% 177.43% 217.31%
----------------------------------------------------------------------
Accruing loans 90 days or more
past due:
Residential real estate $17,261 $16,235 $18,518
============ ============ ============
----------------------------------------------------------------------
(1) Ratios are calculated based on the net book value of loans
receivable before deducting allowance for loan losses.
COMMERCIAL FEDERAL CORPORATION
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS AND RATIOS
(Dollars in Thousands Except Per Share Data)
----------------------------------------------------------------------
Sept. 30, June 30, Sept. 30,
2005 2005 2004
----------------------------------------------------------------------
Cash, investment securities and
FHLB stock $852,492 $892,799 $1,430,969
Mortgage-backed securities 610,705 608,906 1,068,713
Loans held for sale, net 49,744 198,570 287,757
Loans receivable, net 7,850,988 7,758,037 7,651,557
Core value of deposits, net 9,519 10,483 13,413
Goodwill 159,229 159,229 162,717
Other assets 631,847 688,591 801,605
Total assets 10,164,524 10,316,615 11,416,731
----------------------------------------------------------------------
Deposits 6,066,243 6,354,932 6,249,222
Advances from Federal Home Loan
Bank 2,810,225 2,798,108 3,767,837
Other borrowings 428,637 306,848 433,599
Other liabilities 86,935 101,334 198,215
Stockholders' equity 772,484 755,393 767,858
Total liabilities and stockholders'
equity 10,164,524 10,316,615 11,416,731
----------------------------------------------------------------------
Book value per common share $20.18 $19.77 $19.51
Stock price $34.14 $33.68 $26.98
Common shares outstanding 38,287,922 38,213,347 39,352,564
Weighted average shares outstanding
per basic EPS 38,043,281 38,124,743 39,583,989
Weighted average shares outstanding
per diluted EPS 39,279,356 38,760,806 40,250,103
----------------------------------------------------------------------
Nonperforming assets $63,725 $67,473 $65,373
Nonperforming assets to total
assets .63% .65% .57%
Quarterly weighted average interest
rates on a taxable-equivalent
basis:
Yield on interest-earning
assets 6.12% 5.91% 5.48%
Rate on deposits and interest-
bearing liabilities 3.12% 2.92% 2.89%
Net interest rate spread 3.00% 2.99% 2.59%
Net interest margin 2.97% 2.95% 2.54%
----------------------------------------------------------------------
Three months ended:
-------------------
Return on average assets .90% .54% .70%
Return on average equity 12.20% 7.46% 10.58%
Average equity to average assets 7.39% 7.26% 6.61%
G & A expenses to average assets 2.54% 2.75% 2.18%
Operating efficiency ratio 62.22% 73.36% 67.27%
----------------------------------------------------------------------
Nine months ended:
------------------
Return on average assets (.20)% n/a .64%
Return on average equity (2.84)% n/a 10.08%
Average equity to average assets 7.15% n/a 6.34%
G & A expenses to average assets 2.57% n/a 2.23%
Operating efficiency ratio 103.76% n/a 68.82%
----------------------------------------------------------------------
COMMERCIAL FEDERAL CORPORATION
AVERAGE BALANCES AND REGULATORY CAPITAL
(Dollars in Thousands)
----------------------------------------------------------------------
September 30, June 30, March 31,
2005 2005 2005
----------------------------------------------------------------------
Three Months Ended:
-------------------
Average Balances:
Total assets $10,221,727 $10,316,781 $11,375,436
Total loans, net 8,004,456 7,978,386 7,943,735
Total loans, before allowances
for loan losses 8,093,749 8,067,971 8,033,507
Total mortgage-backed
securities 608,321 648,626 946,715
Total deposits 6,092,898 6,474,440 6,440,077
Total stockholders' equity 755,029 748,618 776,767
Total interest-earning assets 9,289,996 9,325,324 10,183,505
Total deposits and interest-
bearing liabilities 9,373,328 9,458,768 10,359,946
----------------------------------------------------------------------
December 31, September 30,
2004 2004
----------------------------------------------------------------------
Three Months Ended:
-------------------
Average Balances:
Total assets $11,416,319 $11,559,998
Total loans, net 7,971,943 8,062,478
Total loans, before allowances for loan
losses 8,066,058 8,159,234
Total mortgage-backed securities 1,021,536 1,086,720
Total deposits 6,407,960 6,254,687
Total stockholders' equity 769,737 764,614
Total interest-earning assets 10,281,148 10,406,515
Total deposits and interest-bearing
liabilities 10,460,482 10,609,351
----------------------------------------------------------------------
September 30, December 31,
-------------------------------------
2005 2004 2003
----------------------------------------------------------------------
Year to Date:
-------------
Average Balances:
Total assets $10,633,731 $11,752,057 $12,805,465
Total loans, net 7,975,748 8,145,192 8,704,321
Total loans, before allowances
for loan losses 8,065,297 8,244,282 8,812,133
Total mortgage-backed
securities 733,314 1,141,453 1,362,145
Total deposits 6,334,534 6,410,461 6,629,299
Total stockholders' equity 760,034 756,610 741,337
Total interest-earning assets 9,596,335 10,571,837 11,557,322
Total deposits and interest-
bearing liabilities 9,727,067 10,797,654 11,697,711
----------------------------------------------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2005 2005 2005 2004 2004
----------------------------------------------------------------------
Regulatory Capital:
-------------------
Tangible $712,203 $689,957 $675,848 $695,213 $713,324
Core 712,203 689,957 675,848 695,213 713,324
Total risk-based 831,878 808,157 794,963 812,259 833,679
Tier 1 risk-based 707,756 685,510 671,401 690,779 709,740
Tangible % 7.13% 6.82% 6.63% 6.19% 6.37%
Core % 7.13% 6.82% 6.63% 6.19% 6.37%
Total risk-based % 10.54% 10.30% 10.49% 10.46% 10.78%
Tier 1 risk-based % 8.97% 8.74% 8.86% 8.79% 9.18%
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COMMERCIAL FEDERAL CORPORATION
MORTGAGE SERVICING RIGHTS
(Dollars in Thousands)
----------------------------------------------------------------------
Three Months Ended
Sept. 30, June 30, Sept. 30,
--------------------------------------
2005 2005 2004
----------------------------------------------------------------------
Mortgage Servicing Rights (1):
Beginning balance before
valuation allowance $265 $20,657 $175,266
Mortgage servicing rights
retained through loan sales - 1,796 6,966
Sale of mortgage servicing
rights (263) (22,130) -
Amortization expense (2) (58) (10,616)
------------ ------------ ------------
Ending balance before
valuation allowance - 265 171,616
------------ ------------ ------------
Valuation allowance, beginning
balance 1 3,156 29,366
Amounts charged to operations 2 702 21,644
Sale of mortgage servicing
rights (3) (3,857) -
------------ ------------ ------------
Valuation allowance, ending
balance - 1 51,010
------------ ------------ ------------
Mortgage servicing rights, net
of valuation allowance $- $264 $120,606
============ ============ ============
Fair value at the periods
ended $- $352 $121,876
============ ============ ============
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Loans Serviced for Other
Institutions (1):
Beginning balance $57,570 $1,120,505 $11,049,759
Additions to portfolio 170,159 117,026 479,563
Sale of loans serviced and
loan payments (227,729) (1,183,183) (624,266)
Other items, net - 3,222 (2,099)
------------ ------------ ------------
Ending balance $- $57,570 $10,902,957
============ ============ ============
Loans sub-serviced $189,054 $- $-
============ ============ ============
Serviced loans sold with
servicing retained until
transfer $- $9,874,805 $-
============ ============ ============
----------------------------------------------------------------------
(1) The Corporation sold $18.9 million and $1.2 billion, respectively,
of its loans serviced for other institutions during the quarters
ended September 30, 2005 and June 30, 2005. The Corporation
serviced these loans until the servicing was transferred in the
third quarter of 2005.
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